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AMCON Takes Over Cityscape’s Assets Over N6 billion Debt

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AMCON

The Federal High Court Lagos Division has granted interim orders in favour of Asset Management Corporation of Nigeria (AMCON) to take over the assets Cityscape International Limited over the company’s N6 billion debt.

Following the order, AMCON has since appointed Mr.Anire Kanyi as receiver to Cityscape, a major player in the real-estate sector in the country.

The presiding judge, Justice A.M. Anka, while granting the order on the application of counsel to AMCON, restrained Mr.Akinwale Akinmusire, who is the Managing Director/Chief Executive Office of Cityscape “from challenging, interfering with or otherwise obstructing or frustrating the receiver (Mr. Anire Kanyi) appointed by AMCON over the assets of the company.”

The Court also mandated the receiver to take over and preserve all the assets of Cityscape, including the property situated at Buena Vista Estate, Lafiaji Town, Lekki, Lagos State, measuring 25.52 hectares, being assets covered by Deed of Legal Mortgage dated December 2009 and registered as No. 12 at page 12 in Volume 2014 at the Land Registry, Ikeja (Mortgaged and charged for a loan granted to Cityscape International Limited and guaranteed by Mr. Akinwale Akinmusire).

According to the judge, the order was pursuant to section 34, 35 and 48 of the AMCON Act 2010, section 6 of the AMCON (Amendment) Act 2015 and the Deed of Appointment pending the determination of the Motion on Notice filed along with the motion.

The order also restrained Cityscape, Akinmusire, Cityscape directors, shareholders, agents, servants, employees and or privies howsoever named, or any other person acting under their authority, from interfering with or otherwise obstructing the receiver in the course of his duties.

Justice Anka, however, ordered all banks and financial institutions, the Central Bank of Nigeria (CBN), agencies, institutions and organisations having custody of Cityscape’s fund to furnish the receiver or his office the details of any sums standing to the credit of Cityscape within seven days of being furnished with the order.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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Oil

The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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